Question
Problem 11.1A (Algo) Computing and recording employer's payroll tax expense. LO 11-2, 11-6 The payroll register of Big House Cleaning Company showed total employee
Problem 11.1A (Algo) Computing and recording employer's payroll tax expense. LO 11-2, 11-6 The payroll register of Big House Cleaning Company showed total employee earnings of $4,300 for the payroll period ended July 14. Required: 1. Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. 2. Prepare a general journal entry to record the employer's payroll taxes for the period Analyze: Which of the above taxes are paid by the employee and matched by the employer? Complete this question by entering your answers in the tabs below.
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